> Finance & Stock Exchange > Markets
US STOCKS-Oil's fall, techs' gain drive stocks higher
Reuters: [2008-05-15 23:48:00]
(Updates close with Intel gains, oil shares' rise and CBS deal)
*Oil pullback eases inflation worries
*Microsoft shares jump as Icahn seeks Yahoo control
*Intel gains after price target increase
By Caroline Valetkevitch
NEW YORK, May 15 (Reuters) - U.S. stocks rose in light trading on Thursday, pushing the S&P 500 to its highest close since January, as a pullback in oil prices eased concerns about inflation and a battle to control Yahoo Inc <YHOO.O> helped the tech sector.
The Nasdaq also had its best close since Jan. 3. Shares of chip maker Intel Corp <INTC.O> jumped 4.7 percent after Lehman Brothers raised its price target on the stock, citing strength in notebooks and servers.
Crude oil futures fell to below $122 a barrel during the session, but shares of energy companies gained as investment bank UBS sharply raised its projection for oil prices. Shares of Exxon Mobil Corp <XOM.N> advanced 1.6 percent to $91.30.
News late in the session that key members of the U.S. Senate reached a deal on a housing rescue plan raised hopes for the beleaguered home market.
Financier Carl Icahn started a proxy battle to get control of Yahoo and force it to strike a deal with Microsoft Corp <MSFT.O>. Other deal news included CBS Corp's <CBS.N> plan to buy CNET Networks <CNET.O>.
"Tech is doing great ... That's very encouraging and the Nasdaq chart is the strongest one out there right now," said Joe Saluzzi, co-manager of trading at Themis Trading, in Chatham, New Jersey.
The Dow Jones industrial average <.DJI> shot up 94.28 points, or 0.73 percent, to end at 12,992.66. The Standard & Poor's 500 Index <.SPX> rose 14.91 points, or 1.06 percent, to 1,423.57. The Nasdaq Composite Index <.IXIC> climbed 37.03 points, or 1.48 percent, to close at 2,533.73.
Trading volume continued to be very light on the New York Stock Exchange, with about 1.20 billion shares changing hands, well below last year's estimated daily average of roughly 1.90 billion. On Monday, NYSE volume hit its low for the year at 1.05 billion.
SOXX UP, CNET SOARS
Intel was up $1.13 at $24.97, while the Philadelphia Stock Exchange index of semiconductors <.SOXX> rose 2.1 percent.
June crude <CLM8> dipped 10 cents to settle at $124.12. Traders said a surprisingly large increase in U.S. natural gas inventories contributed to crude's fall. Earlier this week, U.S. crude hit an intraday record at $126.98 a barrel.
"Oil sold off, which was nice, even though it's still very high. That's part of what happened," said Todd Leone. head of listed trading at Cowen & Co. in New York.
In the sweeping housing rescue plan, the two largest U.S. housing finance companies, Fannie Mae <FNM.N> and Freddie Mac <FRE.N>, would backstop a government mortgage insurance fund, two industry sources told Reuters. Shares of home builders surged after the news. An index of home builders <.DJUSHB> rose 3.7 percent.
On the Nasdaq, Yahoo shares gained 2.3 percent to $27.75, while Microsoft rose 1.7 percent to $30.45.
When talks between Microsoft and Yahoo ended earlier this month, the software company was offering $33 a share for Yahoo, but the Internet company was holding out for $37.
Shares of CBS slid 2.4 percent to $24.23 on the NYSE, while shares of CNET surged 43.5 percent to $11.41. CNET was the Nasdaq's second-biggest percentage gainer.
JC PENNEY SHINES
Retailers benefitted after JC Penney Co Inc <JCP.N> said its earnings in the current quarter could top analysts' forecasts. The outlook drove JC Penney's battered stock up 4.7 percent to $46.32 even though it posted a 50 percent profit drop in the first quarter. For details, see [ID:nN15204424]
Data painted a mostly weak picture of the U.S. economy. A report showed softer-than-expected U.S. industrial output for April and a manufacturing report from the New York Federal Reserve Bank was also weak. Meanwhile, initial jobless claims rose slightly more than expected in the latest week.
Volume on Nasdaq was stronger than on the NYSE. About 2.22 billion shares traded, above last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones by a ratio of about 7 to 3 on the NYSE and by 8 to 5 on Nasdaq. (Additional reporting by Jennifer Coogan, editing by Jan Paschal) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging:caroline.valetkevitch.reuters.com@reuters.net))
((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS
UPDATE 3-Toronto stocks yanked higher by robust resources
Reuters: [2008-05-15 23:35:00]
(Adds details, quotes)
*Index closes at record high
*Resource and financial sectors rally
By Leah Schnurr
TORONTO, May 15 (Reuters) - The Toronto Stock Exchange's main index popped up more than 1 percent on Thursday, propelled further into record high territory by strong resource and financial shares.
Inmet Mining <IMN.TO> was the biggest net gainer on the day, rising C$6.25, or 9.3 percent, to C$73.75. Fertilizer company Potash Corp of Saskatchewan <POT.TO> was also among the leaders, finishing up C$5.28, or 2.7 percent, at C$204.50.
Gold producers also jumped, benefiting from rising gold prices. Agnico-Eagle Mines <AEM.TO> was up C$3.38, or 5.3 percent, at C$67.29, while the gold subindex gained 3.6 percent.
The S&P/TSX composite index <.GSPTSE> closed up 201.75 points, or 1.38 percent, at 14,828.06 with all but one of its 10 main sectors moving higher.
The surge helped the benchmark climb further into record territory, continuing the week's trend after it broke last summer's record high on Monday.
The financials sector, the biggest group on the index by weight, rose 1.6 percent, with Toronto-Dominion Bank <TD.TO> rising 94 Canadian cents, or 1.4 percent, to C$68.51, and Canadian Imperial Bank of Commerce <CM.TO> up 83 Canadian cents, or 1.1 percent, at C$74.84.
Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc., in Vancouver, said that banks were helped by easing trepidation over what problems may be still lurking in the financial sector.
"I think as investors look at more news being disseminated, as some of the financials have reported the potential losses that they're going to take, I guess they feel that we know more of the situation," Mastracci said.
"The more they know, they more they feel better about the prospects going forward, and I think there's some of that in there today."
On the downside, FirstService Corp <FSV.TO> tumbled C$2.77, or 12.2 percent, to C$19.96 after the property services firm swung to a fourth-quarter loss as it was stung by unfavorable market conditions.
The telecoms sector was the only group in negative territory, giving up 0.2 percent.
Shares of Lundin Mining <LUN.TO> added 68 Canadian cents, or 8.8 percent, to C$8.38 after it reported first-quarter profit rose, helped by rising copper and lead prices, as acquisitions increased production.
The Toronto benchmark has climbed more than 20 percent from the lows seen in January, when it dipped below the 12,000 mark amid worries over the health of the U.S. economy and troubles in the financial and credit markets.
Since then it has been spurred higher by red-hot commodities prices, and recent optimism that the worst of the credit problems have been seen. Analysts have also noted that the current round of corporate results generally have been better than had been feared.
"We're getting to the end of earnings season and we got through this without any terribly nasty surprises," said Rick Hutcheon, president and chief operating officer at RKH Investments.
"I think that the mood of investors is probably starting to gain a little traction, and that we're starting to feel a little more optimistic that perhaps the worst of the credit issues are beginning to recede."
Market volume was 441 million shares worth C$8.1 billion. Advancers outpaced decliners 985 to 655. The blue chip S&P/TSX 60 index <.TSE60> closed up 13.14 points, or 1.51 percent, at 884.73.
In New York, stocks were up as a pullback in oil prices calmed worries about inflation. The Dow Jones industrial average <.DJI> closed up 94.28 points, or 0.73 percent, at 12,992.66, and the Nasdaq Composite Index <.IXIC> rose 37.03 points, or 1.48 percent, to 2,533.73. ($1=$1.00 Canadian) (Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
UPDATE 3-Toronto stocks yanked higher by robust resources
Reuters: [2008-05-15 23:35:00]
(Adds details, quotes)
*Index closes at record high
*Resource and financial sectors rally
By Leah Schnurr
TORONTO, May 15 (Reuters) - The Toronto Stock Exchange's main index popped up more than 1 percent on Thursday, propelled further into record high territory by strong resource and financial shares.
Inmet Mining <IMN.TO> was the biggest net gainer on the day, rising C$6.25, or 9.3 percent, to C$73.75. Fertilizer company Potash Corp of Saskatchewan <POT.TO> was also among the leaders, finishing up C$5.28, or 2.7 percent, at C$204.50.
Gold producers also jumped, benefiting from rising gold prices. Agnico-Eagle Mines <AEM.TO> was up C$3.38, or 5.3 percent, at C$67.29, while the gold subindex gained 3.6 percent.
The S&P/TSX composite index <.GSPTSE> closed up 201.75 points, or 1.38 percent, at 14,828.06 with all but one of its 10 main sectors moving higher.
The surge helped the benchmark climb further into record territory, continuing the week's trend after it broke last summer's record high on Monday.
The financials sector, the biggest group on the index by weight, rose 1.6 percent, with Toronto-Dominion Bank <TD.TO> rising 94 Canadian cents, or 1.4 percent, to C$68.51, and Canadian Imperial Bank of Commerce <CM.TO> up 83 Canadian cents, or 1.1 percent, at C$74.84.
Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc., in Vancouver, said that banks were helped by easing trepidation over what problems may be still lurking in the financial sector.
"I think as investors look at more news being disseminated, as some of the financials have reported the potential losses that they're going to take, I guess they feel that we know more of the situation," Mastracci said.
"The more they know, they more they feel better about the prospects going forward, and I think there's some of that in there today."
On the downside, FirstService Corp <FSV.TO> tumbled C$2.77, or 12.2 percent, to C$19.96 after the property services firm swung to a fourth-quarter loss as it was stung by unfavorable market conditions.
The telecoms sector was the only group in negative territory, giving up 0.2 percent.
Shares of Lundin Mining <LUN.TO> added 68 Canadian cents, or 8.8 percent, to C$8.38 after it reported first-quarter profit rose, helped by rising copper and lead prices, as acquisitions increased production.
The Toronto benchmark has climbed more than 20 percent from the lows seen in January, when it dipped below the 12,000 mark amid worries over the health of the U.S. economy and troubles in the financial and credit markets.
Since then it has been spurred higher by red-hot commodities prices, and recent optimism that the worst of the credit problems have been seen. Analysts have also noted that the current round of corporate results generally have been better than had been feared.
"We're getting to the end of earnings season and we got through this without any terribly nasty surprises," said Rick Hutcheon, president and chief operating officer at RKH Investments.
"I think that the mood of investors is probably starting to gain a little traction, and that we're starting to feel a little more optimistic that perhaps the worst of the credit issues are beginning to recede."
Market volume was 441 million shares worth C$8.1 billion. Advancers outpaced decliners 985 to 655. The blue chip S&P/TSX 60 index <.TSE60> closed up 13.14 points, or 1.51 percent, at 884.73.
In New York, stocks were up as a pullback in oil prices calmed worries about inflation. The Dow Jones industrial average <.DJI> closed up 94.28 points, or 0.73 percent, at 12,992.66, and the Nasdaq Composite Index <.IXIC> rose 37.03 points, or 1.48 percent, to 2,533.73. ($1=$1.00 Canadian) (Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
U.S. Cash Grain - River soy bids firm, interior steady
Reuters: [2008-05-15 23:34:00]
CHICAGO, May 15 (Reuters) - Spot basis bids for corn and
soybeans were mostly steady in the U.S. Midwest interior on
Thursday and country movement was slow as a drop in soy futures
sidelined farmers, dealers said.
* The soy basis firmed 3-4 cents at river locations due to
rising CIF values at the U.S. Gulf. Exporters were monitoring
the situation in Argentina, where a farm leader said farmers
were likely to extend their strike against taxes on grain and
soy exports.
* River corn bids eased due to weaker CIF values.
* Planting weather was improving in Iowa and farmers there
were making progress with fieldwork, dealers said. But rain
fell across Missouri and parts of Illinois, Indiana and Ohio.
* Barge freight was steady to slightly cheaper on Midwest
rivers. [ID:nN15530380] Bids for this-week barges held steady
at 300 percent of tariff on the lower Ohio River.
* On the Mississippi River at St. Louis, barges were bid at
300 percent and offers were quoted at 320 percent, down 5
points from Wednesday. On the Illinois River, bids for
next-week barges were quoted at 370 percent, down 5 points from
Wednesday.
* At the Chicago Board of Trade, soybean futures for July
delivery <SN8> fell 32 cents to close at $13.47-1/2 per bushel,
pressured by early prospects for an end to the Argentine
farmers' strike. Later, after the CBOT close, a farm group
source said farmers were likely to extend the strike.
* CBOT July corn <CN8> ended 2-3/4 cents higher at $5.99
per bushel on a light short-covering bounce, after the market
spent most of the day in the red on forecasts for improved U.S.
planting weather.
* CBOT July wheat <WN8> settled 7-1/2 cents higher at
$7.71-1/2 a bushel after a seesaw session, as the market
rebounded from a 5-1/2-month low.
Basis Prev Cash price
Chicago, Illinois
Corn processors -17 + N -17 + N 5.8200
Corn elevators -37 + N -37 + N 5.6200
Soybean elevators -25 + N -25 + N 13.2250
Wheat elevators -110 + N -110 + N 6.6150
Wheat processors -70 + N -70 + N 7.0150
Decatur IL corn -22 + N -22 + N 5.7700
Decatur IL soybeans +20 + X +20 + X 13.3925
Burns Harbor IN corn -43 + N -43 + N 5.5600
Burns Harbor soy -25 + N -25 + N 13.2250
Lafayette IN soy +0 + N +0 + N 13.4750
Toledo, Ohio (port)
Corn -23 + N -20 + N 5.7600
Soybeans +28 + X +30 + X 13.4725
SRW wheat (DP) -88 + N -88 + N 6.8350
Davenport, Iowa (river)
Corn -51.5 + N -50 + N 5.4750
Soybeans -61 + N -64.5 + N 12.8650
Evansville, Ind (rail) 15-car CSX
Corn -15 + N -15 + N 5.8400
Cincinnati, Ohio (rail) 3-car
Corn -15 + N -15 + N 5.8400
Hereford, Texas (rail)
Corn +42 + N +42 + N 6.4100
Columbus, Ohio (rail) 3-car
Corn -17 + N -17 + N 5.8200
Morris, Illinois (river)
Corn -46 + N -41.5 + N 5.5300
Soybeans -55.5 + N -59 + N 12.9200
SRW wheat (new crop) UNQ + 0 UNQ + 0 #VALUE!
Kansas City (rail)
Corn -6 + N -6 + N 5.9300
Blair, Nebraska
Corn -25 + N -25 + N 5.7400
Council Bluffs, Iowa
Yellow corn -36 + N -36 + N 5.6300
Soybeans -13 + X -13 + X 13.0625
Des Moines, Iowa
Soybeans -57.5 + N -55 + N 12.9000
Sioux City, Iowa
Soybeans -60 + N -60 + N 12.8750
------------------------------------------------------------
LINKS:
For U.S. forward basis spreadsheets, please click on:
<CORN/BASIS> <SOYA/BASIS> <WHEAT/BASIS> <MILO/BASIS>
* U.S. Midwest cash grain AM [GRA/M]
* U.S. grain barge freight values [BG/US]
* U.S. CIF Gulf Grain [GRA/C]
* U.S. FOB Gulf Grain [GRA/F]
------------------------------------------------------------
(Reporting by Julie Ingwersen; editing by Jim Marshall)
((julie.ingwersen@thomsonreuters.com; +1 312-408-8720; Reuters
Messaging: julie.ingwersen.reuters.com@reuters.net))
Keywords: MARKETS GRAIN CASH
UPDATE 5-Senators reach accord on US housing rescue-sources
Reuters: [2008-05-15 23:26:00]
(Recasts with sources on deal, Dodd comments, background)
By Patrick Rucker and Kevin Drawbaugh
WASHINGTON, May 15 (Reuters) - Leaders of the U.S. Senate Banking Committee have reached a deal on a broad housing rescue plan in which Fannie Mae <FNM.N> and Freddie Mac <FRE.N> would provide funds to support a federal mortgage insurance fund, two industry sources said on Thursday.
Committee Chairman Christopher Dodd, a Connecticut Democrat, said an accord had not yet been finalized, but he told reporters after a meeting of the panel, "We're getting pretty close to it ... We're down to a few issues."
Funding for the $300-billion mortgage insurance fund, to be run by the Federal Housing Administration (FHA), proved to be one of the biggest stumbling blocks during talks all week between Dodd and Sen. Richard Shelby, the committee's top Republican.
Developing a mechanism to fund the program was seen as key to getting the rescue plan out of the banking committee and to the Senate floor for final approval, although that could still be a distant prospect. Aides said Senate leaders are not yet engaged in the housing package debate.
Dodd and Shelby have also agreed on language to create a new regulator for Fannie Mae and Freddie Mac, the lobbyists said.
The Dodd-Shelby pact on financing the FHA mortgage insurance fund would see Fannie Mae and Freddie Mac direct money from a new affordable housing fund to the government's largest homebuyer aid program.
The GSEs would send 100 percent of their contributions to backstop the insurance program in its first year, 75 percent in the second year and 50 percent in the third, the sources said.
The formula was crafted by Sen. Jack Reed, Democrat from Rhode Island, to satisfy Shelby, who objected to any taxpayer subsidy for the rescue plan, lobbyists said.
After temporarily adjourning a late afternoon banking committee meeting on the legislation and pledging to reconvene later in the evening, Dodd said, "We're in pretty good shape. Let's see what happens over the next few hours."
The White House has threatened to veto a similar rescue package passed last week by the House of Representatives. But the Bush administration has left open the door to discussions.
White House spokesman Scott Stanzel on Thursday said, "We're not commenting on any discussions we may or may not be having. If a bill comes to the president's desk it should meet the principles he has outlined."
Administration officials have said President George W. Bush's priorities are to retool the FHA with a system that sees riskier borrowers pay a higher mortgage insurance premium and reforming Fannie Mae and Freddie Mac oversight.
Both the Senate and House packages contain approaches to meeting those White House's goals. But both packages also propose setting up the FHA mortgage insurance fund, an idea that the administration dislikes.
The Congressional Budget Office has said that the FHA mortgage insurance plan would cost up to $2.7 billion. That would pay for expanding the FHA so it can help arrange lower-cost refinancing for as many as 500,000 homeowners whose homes have lost value since they took out their mortgages.
Shelby, of Alabama, has insisted that taxpayer money not be used to finance the FHA insurance program. He was not present at the Thursday afternoon committee meeting.
"We believe that we have an agreement in concept," said Shelby spokesman, Jonathan Graffeo. "We are now in the process of seeing whether that concept can be translated into legislative language that we can agree on."
Since last spring, the nation's mortgage market has been shaken by sinking home values that have erased billions of dollars of investor wealth. An estimated two million foreclosures are forecast for this year.
In March, the Federal Reserve put billions of dollars on the line to facilitate the takeover of Wall Street investment firm Bear Stearns Cos Inc <BSC.N>, which was near collapse.
Democrats have criticized policy-makers for being too eager to bail out investors, yet reluctant to aid struggling homeowners.
Last week, the House approved its own version of legislation to set up the $300 billion fund, adding billions more in homeowner aid to stabilize the market.
House Financial Services Committee Chairman Barney Frank, who sponsored the House bill, said on Thursday he saw some chance a deal could be reached.
"I wouldn't say I was optimistic, but I think it has a reasonable chance," the Massachusetts Democrat said. (Reporting by Patrick Rucker and Kevin Drawbaugh) ((patrick.rucker@thomsonreuters.com; +1-202-310-5474; Reuters Messaging: patrick.rucker.reuters.com@reuters.net)) Keywords: USA HOUSING/CONGRESS
. Keywords: USA HOUSING/CONGRESS
Next: UPDATE 5-Senators reach accord on US housing rescue-sources